DP World Trade Finance has teamed up with Nedbank Corporate and Investment Bank (Nedbank CIB), a wholesale banking arm of the Nedbank Group based in South Africa.
The partnership includes initiatives to enhance supply chain for DP World’s suppliers in Sub-Saharan Africa (SSA) and a risk-sharing agreement to improve the trade finance availability to businesses across the region. These trade finance solutions will enable businesses to easily move their goods, ensuring improved working capital and seamless trade.
Many regional businesses face challenges in accessing trade finance solutions, limiting their participation in global trade. These obstacles arise from the limited availability of creditworthiness data, lack of visibility and control on the underlying trade, which fuels the perceived risks within the supply chain.
‘DP World Trade Finance’ launched by DP World aims to bridge the trade finance gap by connecting businesses with financial institutions and providing trade finance facilities directly from its own balance sheet.
Mohammed Akoojee, CEO & Managing Director for sub-Saharan Africa at DP World, commented that, “Our partnership with Nedbank represents a significant step forward in addressing the trade finance challenges that have impacted the growth potential of businesses across sub-Saharan Africa. By combining DP World’s logistics capabilities with innovative financial solutions, we are not only enabling our suppliers to thrive but also fostering a more transparent and efficient trade ecosystem. This collaboration underscores our commitment to transforming trade and unlocking opportunities for sustainable economic growth in the region.”
Anél Bosman Group Managing Executive – Nedbank CIB
“Our partnership with DP World Trade Finance highlights Nedbank’s commitment to driving sustainable growth and supporting economic recovery across sub-Saharan Africa. By combining our expertise in structured finance with DP World’s logistics network, we are well-placed to tackle the region’s trade finance challenges. This collaboration improves trade flow, empowers businesses to navigate a challenging economic environment, and unlocks new growth opportunities. This partnership demonstrates how we leverage our unique ecosystem expertise to see unexpected connections and create sustainable growth.”
DP World Trade Finance has introduced a supply chain finance program on its platform, with Nedbank CIB as the financer. This allows DP World’s suppliers in the SSA to access early payments on their approved receivables. The program aims to alleviate the working capital constraints for suppliers by offering a more economical financing option.
Additionally, Nedbank CIB and DP World Trade Finance signed a risk-sharing agreement to jointly share risk and increase the overall credit available to clients. Virtual Farmer program, established by Specialized Agri Solutions (SAS), enables DP World Trade Finance and Nedbank CIB to collaboratively provide enhanced credit to farmers.
The initiative ensures that they have the necessary working capital to procure inputs such as seed, fertilizer and diesel for crop cultivation. Running successfully for the past 12 seasons, this program highlights the impact of such structured trade finance solutions.
